1) MDY's 12 day MACD (black line) is moving above the 26 day MACD (red line) signalling a bullish uptrend.
2) This uptrend can also be noticed from the MACD histogram (the blue bars). Notice the downward trend from May 15-22 has reversed and is slowly trending upwards. Such higher lows are positive for the MDY.
3) Another bullish note for the MDY is that its above its 200 day MA but its still under it's 50 day MA. One of my favourite technical indicators is W%R, & MDY's W%R indicates that its overbought (W%R of above 80-100 indicates overselling & below 20 indicates overbought).
4) MDY has been showing strength of reversing ever since it dropped to 135ish level in May but what worries me is the volume. The volume that its been rising on isn't as strong as what it fell on. A bullish indiciation would be for MDY to breach its 50 day MA on heavier volume than average.
One of the strongest sectors in the markets since '06 & for the past three years has been the small cap sector, so let's try to dissect the bullish prospects of MidCap SPDRs (MDY):